Sunderland AFC place players on furlough leave: why it’s happened and what it really means

Here’s what it really means for the Black Cats and the individuals affected:

WHAT HAVE SUNDERLAND DONE?

Sunderland have today confirmed that all first-team players, contracted academy players and backroom staff have been placed on furlough leave.

A club statement read: “Sunderland AFC can today confirm that its first-team players, contracted academy players and backroom staff have recently been placed on furlough leave due to the ongoing impact of the COVID-19 pandemic.

“Last week, the FA, the Premier League and the EFL announced they would be collectively postponing their competitions until such time that it is safe for them to resume.

“At this moment in time, SAFC has no intention to ask any players or staff to take a wage reduction or deferral on their salary, and the club remains fully committed to ensuring all employees are paid in full.

“A small number of staff, including manager Phil Parkinson, continue to work from home, and the club’s priority remains the health and wellbeing of its players, staff, supporters and local community during this unprecedented period.”

WHAT DOES ‘BEING FURLOUGHED’ MEAN?

Under the government’s job retention scheme, employers are able to ‘furlough’ their employees.

This means that they are essentially placed on paid leave, with the employer than able to apply for a grant which covers up to 80 per cent of the individual’s wage. There are some restrictions on this, however, which we will cover later.

Initially, this scheme is set to run from three months having begun on March 1 - but is likely to be extend should the COVID-19 outbreak continue to cause disruption to normal working patterns into June and July.

ARE THERE RESTRICTIONS ON HOW MUCH CAN BE CLAIMED?

Yes - Sunderland can only claim up to £2,500 per month towards an employee’s wage.

Naturally, a large number of the Black Cats’ first-team players will earn well over this threshold.

In that instance, Sunderland will pay the difference to ensure that now players or staff are left without their usual pay.

CAN PLAYERS STILL TRAIN WHILE ON FURLOUGH LEAVE?

Players can still train while on furlough leave, albeit on an individual basis.

Government regulations state that when on furlough leave, employers cannot ask “to do any work that makes money for your organisation or provides services for your organisation.”

That leaves some grey area over whether clubs can advise players over their training schedules, or whether it is now down to the individual.

WHY HAVE THE CLUB DONE THIS?

It’s worth noting at this point that Sunderland are not the only club to have taken this step.

League One sides Coventry City, Portsmouth and Doncaster Rovers have also placed players on furlough leave, as too have a number of fourth tier clubs.

Simply put, this is a move designed to protect the club’s finances.

While Sunderland may not be as reliant on match day income as most other League One outfits, they have still been deprived of some of their regular incomings.

At this stage in a season, the Black Cats could usually rely on a steady stream of income coming from match ticket, season ticket and merchandise sales. Naturally, all of these have slowed down to a near-halt in recent weeks.

Outgoings, though, remain the same. Player wages still have to be paid despite the drop in income and, by placing members of the playing squad on furlough leave, Sunderland can get some support in doing this - meaning they don’t have to draw upon their cash reserves.

SHOULD FANS BE WORRIED BY THIS DEVELOPMENT?

This is simply a precautionary move and one which will likely become commonplace in League One the longer the EFL suspension continues.

An interesting caveat to the job retention scheme is that employers must prove they are able to pay the wages without any financial support in order to be eligible for the government’s input.

Therefore, this is no indication that Sunderland are short on cash or anything of that ilk. It is simply the club looking to protect their financial state.

HOW IS FURLOUGH LEAVE ENDED?

Furlough leave has to last a minimum of three weeks. Employees cannot be recalled to work before this point.

Once three weeks have passed, Sunderland could recall their players and staff at 48 hours notice.

The Black Cats could also elect to recall players and then place them on furlough leave again, should it prove necessary.

There is also no regulation that states everyone must be recalled from furlough leave at the same time. Hypothetically, players could be brought back into the business at varying stages to stagger their return.